The boom in ecommerce shows no signs of slowing down. It is estimated that the industry will grow to 279 billion dollar in 2015. With this unprecedented projection in growth, it is very clear that more and more people will jump on the bandwagon and the number of estores will mushroom exponentially.

With this sharp increase in competition, how could you an owner of an online store could even hope to retain your share of customers and grow your business. This question has nagged many experts and store owners. For some the answer is customer reviews.

Customer reviews are generated by customers who share their (positive or negative) opinions about the product or services. These reviews are listed at the store’s website and third party customer reviews websites. This allows the people looking to purchase the product make an informed decision about the pros and cons of the product and the company offering it.

Generally, these reviews are generated by customers who have become regular at a particular store. Fan boys are also a great source of reviews. However, many store owners still question the validity and efficiency of customer reviews in the context of sales and traffic generation. Here are three reasons why customer reviews have become one of the most powerful tools in the inventory of e marketers and store owners.

Reviews build Trust

People by nature trust the word of their family and friends. This is why the phenomenon of word-of-mouth advertising exists for such a long time. Customer reviews are a natural digital extension of this idea.

Customer reviews adds the elements of trust because they are digital equivalent to asking your friends for advice. They reduce (or in best cases remove) doubts about the product and induce the viewer in continuing with the purchase.

You as the store owner must make sure that you provide the buyers and visitors ample opportunities for reading and posting reviews. This will help add to the level of trust of the visitors.

Reviews are essential for an increase in conversion rate of the visitors

A review written by a guanine satisfied customer is one of the best encouragements to a visitor. There is a rule of thumb for customer reviews and conversion rates. A product page with ten or more customer reviews has more chances of adding to your sales leads than an empty page. People usually prefer the word of other customers rather than hearing the store owners talking about how great the services are.

Reviews are a boom to your SEO efforts

In the cut throat competition of ecommerce, the first page of every search listing is the main battleground. Every e commerce concern in the world spends a lot of money on SEO efforts. Customer reviews are an excellent addition to your SEO efforts for two important reasons:

  • They are generated by people. This causes organic traffic and mentions of your brand/store on the internet. This is one of the best things that could happen for your SEO efforts.
  • The format of customer reviews is a natural for increasing your search engine rankings. The combination of “product name”+ “keywords for your product” is very powerful and is highly favoured by search engines.